Bakery in Turkey

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Executive Summary

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BAKED GOODS

Trends

In 2014, the increasing availability and popularity of NH high fibre bread among Turkish consumers negatively affects the volume sales of unpackaged/artisanal bread which constitutes nearly 97% of total volume sales of baked goods in Turkey. Promotional activities of health authorities and government officials for increasing the consumption of wholegrain bread also negatively affected the volume sales of unpackaged/artisanal bread. More recently, The Turkish Grain Board launched a new campaign called “Ekmegini Israf Etme” (Don’t Waste your Bread) which works to curb the amount of waste bread in Turkey through educational activities with regard to consumption of bread. The majority of consumers however still give prominence to the warmness and freshness of the bread while it is still a small group that gives prominence to whether the bread is wholegrain. Additionally, leading packaged/industrial bread producers have been utilising this campaign by indicating that the consumption of packaged/industrial bread is a good way to alleviate the waste bread problem as these products can be re-heated and consumed for a long time.

Competitive Landscape

With a 94% share in 2014, artisanal products dominate baked goods. This dominance largely stems from the Turkish consumers’ preference for fresh baked products. Although still dominating, the artisanal share is decreasing in baked goods because of increasing health awareness and changing eating habits of Turkish consumers.

Prospects

Over the forecast period, the overall sales of baked goods are expected to decline, leading to a negative value CAGR of 3%. This decline is due to the declining value sales of unpackaged/artisanal bread and bread substitutes. Sales of unpackaged/artisanal bread are expected to decrease due to the increasing health awareness and changing eating habits of Turkish consumers. Moreover, the increasing consumer awareness of waste bread due to the “Don’t Waste Your Bread” promotion campaign will continue to have negative impact on the daily sales of unpackaged/artisanal bread.

BISCUITS

Trends

Turkey’s relatively high young population and leading companies’ successful new product launches lead to current value growth of 11% which is higher than the review period CAGR. The growth is mainly due to the successful new product launches in 2013 and 2014 such as Yildiz Holding’s Ulker Dore, new NH high fibre biscuit range, Saklikoy and Eti Gida San ve Tic AS’s new Eti Burcak Sutlu Cikolatali. Apart from these new product developments, the leading companies are also investing in their established brands. For example, Yildiz Holding AS launched the mini bite-size version of its famous Biskrem brand.

Competitive Landscape

In 2014, the leading company in biscuits continued to be Yildiz Holding AS with a 43% value share. The second ranking company is Eti Gida with a 33% value share. Yildiz Holding’s wider product range and wider and more successful distribution network have enabled the company to become the leading player in biscuits in Turkey. The two leading players dominate biscuits and further consolidate their position with their successful new product launches which target changing consumer preferences in Turkey.

Prospects

Over the forecast period, biscuits is expected to register a higher value CAGR of 3% at constant 2014 prices, compared to that recorded over the review period. Increasing young population, urbanisation, expected new product launches and successful advertising campaigns will fuel this growth.

BREAKFAST CEREALS

Trends

In 2014, breakfast cereals registered a higher current value growth than 2013. When compared to the Western European average, the consumption of breakfast cereals in Turkey is low. However, it has been rapidly increasing as a result of urbanisation and higher numbers of mothers at work. Breakfast cereal is increasingly regarded as a quick, practical and highly nutritious meal. As the level of education and employment is increasing in Turkey, more and more people prefer breakfast with breakfast cereals. Moreover, new product launches by the leading companies further stimulate the growth of breakfast cereals.

Competitive Landscape

In 2014, Nestlé continues to dominate breakfast cereals with a 51% share, thanks to the good performance and strong brand awareness of its Nesquik and Nesfit brands. Although the company used to be very active in terms of new product launches over the review period, in 2014, rather than launching new products, the company focused on marketing activities for its existing products. Additionally, the majority of the company’s sales are coming from its Nesfit brand which registers negative growth due to the increasing popularity of muesli products among young female urban consumers with high health awareness. Due to this shift, the company loses share to other companies which are more active and successful in terms of targeting changing consumer preferences with new product launches.

Prospects

Over the forecast period, breakfast cereals is expected to register positive growth, as consumers will switch to easy and quick breakfast options. This is especially the case for larger cities, where consumers need practical meal replacement alternatives as a consequence of their increasingly active life. However, breakfast cereals is expected to register a lower value CAGR at constant 2014 prices, over the forecast period compared to the review period. Mainly, this will be the result of market saturation, especially with regard to flakes.

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